LONDON, Sept 30 The cost of swapping euros into
dollars on the 'cross currency basis' market rose to its highest
in four years on Friday, as growing concerns over Deutsche Bank
led to increased demand for dollars across the financial market
spectrum.

Cross currency basis is seen as a measure of the scarcity of
one currency relative to the other, and is often considered a
broader gauge of the health of the banking system.

In a smooth-functioning market there is usually a small
premium for dollars over euros. It has been persistently high
all year, and on Friday the three-month basis widened to -62
basis points from -53 bps, marking the largest
premium for dollars in four years.

"The three-month cross currency has widened on worries about
Europe's banking sector. There are fears that the U.S. money
market funds may be reluctant to lend dollars to Europe," said a
trader at an European bank.

Shares in Germany's biggest lender fell below 10 euros for
the first time following a Bloomberg report that
some hedge funds had withdrawn some excess cash and adjusted
positions, a sign that counterparties are wary of doing business
with it.
(Reporting by Jamie McGeever and Anirban Nag; Editing by Sujata
Rao)

Next In Financials

LISBON, Dec 9 The Bank of Portugal will not
alter the way it purchases debt under the European Central
Bank's quantitative easing programme following changes announced
by the ECB and will make sure Portuguese debt is bought until
the end of the plan.

MUMBAI, Dec 9 Three months ended September 30
(versus the same period a year earlier). All figures in billion
rupees.
September 2016 September 2015
Net profit 2.06 2.061
Revenues 22.26 22.35
NOTE: DLF Ltd is an Indian real estate company. The
results are consolidated.
SOURCE TEXT:http://bit.ly/2hn1vcH
(Reporting by Rajendra Jadhav)